On 21 December 2020, the Parliamentary Joint Committee on Corporations and Financial Services (PJC) handed down its report, Litigation funding and the regulation of the class action industry.
Recommendation 20 of the report was that the Australian Government consult on:
- the best way to guarantee a statutory minimum return of the gross proceeds of a class action (including settlements)
- whether a minimum gross return of 70 per cent to class members, as endorsed by some class action law firms and litigation funders, is the most appropriate floor
- whether a graduated approach taking into consideration the risk, complexity, length and likely proceeds of the case is appropriate to ensure even higher returns are guaranteed for class members in more straightforward cases.
This joint consultation by the Treasurer and the Attorney-General responds to Recommendation 20 of the PJC’s report. The consultation will close on 28 June 2021.
- Consulting on the recommendations of the Parliamentary Joint Committee report on litigation funding and class actions
The Hon Josh Frydenberg MP
28 May 2021